UN Sustainable Achivement Goal
By Ashley Riley
Economic development represents one of the countries’ macroeconomic indicators. For this reason, countries around the world accept this variable as a goal and prepare their future plans. If economic growth needs to be explained in the simplest way, it is an increase in the total number of goods and services produced per capita. The number of goods and services produced in an economy depends on the amount of inputs and the level of technology. Moreover, As economic growth increases, employment will increase and the unemployment rate will decrease. Although the global unemployment rate has rised, increasing investments in trade, banking and agricultural infrastructure will help economic growth and reduce unemployment levels worldwide in the long run.
One of the effective ways to drive economic growth and reduce unemployment rates is to invest in the banking sector. The increase in employment and income levels around the world is closely related to banking reform. It is possible for the economy to grow permanently and rapidly only with the increase in investments. One of the most important sources of investments is the loans provided by banks. From 2011 to 2013, the serious economic crisis at the Greek Cypriot Administration confirmed this through pre-crisis, regeneration, and growth steps. Constantinou (2017), who was ministry of finance, in his study “Cyprus Economy: Past-Present and Prospects” provides detailed information about the crisis process. According to the Constantinou, during the economic crisis between 2011 and 2013, the banking sector had a poor order and oversight and over-credit expansion. As a result, economic growth fell to -6% in 2013, while the unemployment rate reached 16.1%. In the process of renewal, which began in 2014, the banking sector has been restructured and the audit and regulatory framework has been developed. In 2015, the banking sector strengthened and credit conditions improved. As a result, the unemployment rate fell to 10%, while economic growth reached 2.8%. On the other hand, Pettinger (2017) in his article “Impact of a Banking Crisis” stated that the economic crisis that emerged in England in 2008 had a serious decline in real GDP despite the investments made in banking. According to the Pettinger, “As consumer confidence falls, they reduce spending, therefore there is less demand for goods. Because firms are producing less, they respond by laying off workers. Firms may go out of business causing significant unemployment.” Although Pettinger is right to state the impact of consumer confidence on the economy and unemployment, a country with high economic unemployment rates and high rates of unemployment, as seen in the case of the Greek Cypriot Administration, proved to have stabilized in a short time by rearranging the banking sector primarily. In short, ensuring global economic growth and declining unemployment rates are vital and must be achieved in a short time, especially for a country in the economic crisis. One of the ways to achieve this is undoubtedly to reform the sector with investments in the banking sector and to revive the economy.
One of the effective ways to drive economic growth and reduce unemployment rates is to invest in agricultural infrastructure. Agriculture is an important sector for reasons such as the ability to maintain the life of the country’s population, contributing to domestic income and employment, and creating raw elements for other sectors. Globalization, increasing competitive conditions, a growing world population and global warming, the importance of the agricultural sector is increasing. The relationship between increasing population and agricultural products is the basis of the problem of division in world economies. The growing world populations of agricultural products, which are essential, and the inadequacies in meeting the needs along with global risks have become the main problem of the world economy. This problem has led to a reconsideration of the role of agriculture for world economies especially in terms of sustainable economic growth. Anderson (2006) in his article analyzed Middle East by addressing the period 1975-2002. In his study, Anderson applied causality analysis. As a result of the study, it determined that agricultural and economic growth variables were balanced in long-term humidity and that there was a bilateral causality relationship between variables. On the other hand, Muammil (2006), who is an academician in University of Khairun, in her article “The Effect of Government Expenditure and Private Investment on Work Opportunities and Unemployment Rate in Indonesia” stressed that the agricultural sector is the cause of seasonal unemployment. According to the her, fisherman, farmers and rubber tapper cannot work in the dry seasons. I think Muammil made a mistake by not thinking about agriculture sustainably in her thesis. Because economic growth, which comes with investment in agriculture, will lead to a decrease in unemployment in many interrelated sectors, such as services and transportation, not only in the agricultural sector. As a result, investing in agricultural infrastructure will benefit sustainable global economic growth and lower unemployment rates in the long term.
When everything is taken into account, Although unemployment has increased worldwide, it is clear that increased investment in trade, banks and agricultural infrastructure will lead to economic growth and reduce unemployment rates worldwide in the long run. Firstly, investments in trade will be made together with the free market economy. Newly established businesses will be focused on growth by increasing competition. Besides, investments in the banking sector have led to the development of the economy of countries in a short time, even in times of crisis. In fact, the banks are the source of all investments to be made in the country. Finally, investments in agricultural infrastructure in a globalised and growing world of population are vital, but will lead to positive economic results in the long term. Global economic growth and unemployment rates are inevitable as a result of all these investments.
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